Source: PaxForex Premium Analytics Portal, Fundamental Insight
New Zealand Permanent/Long-Term Migration for May came in at 1,410. Forex traders can compare this to Permanent/Long-Term Migration for April, reported at 5,110. External Migration & Visitors for May surged 12.1% monthly. Forex traders can compare this to External Migration & Visitors for April, which increased 1.7% monthly. Visitor Arrivals for May rose by 4.0% monthly. Forex traders can compare this to Visitor Arrivals for April, which dropped 8.8% monthly.
Final Australian Building Approvals for May increased by 5.5% monthly, and Final Private House Approvals rose by 2.1% monthly. Economists predicted a rise of 5.5% and 2.1%. Forex traders can compare this to Australian Building Approvals for April, which rose 1.6% monthly, and Private House Approvals, which dropped 3.0% monthly.
The Chinese CPI for June decreased by 0.2% monthly and rose by 0.2% annualized. Economists predicted a contraction of 0.1% and an increase of 0.4%. Forex traders can compare this to the CPI for May, which decreased by 0.1% monthly and rose by 0.3% annualized. The Chinese PPI for June dropped by 0.8% annualized. Economists predicted a contraction of 0.8%. Forex traders can compare this to the Chinese PPI for May, which decreased by 1.4% annualized.
The Reserve Bank of New Zealand kept interest rates unchanged at 5.50%. Economists predicted no change in interest rates. Forex traders can compare this to the Reserve Bank of New Zealand's previous interest rate announcement, where rates were unchanged at 5.50%. Traders should monitor interest rate divergences among G7 economies as monetary policy has begun to diverge.
The forecast for the AUD/NZD turned negative after this current pair spiked into its horizontal resistance area following the Reserve Bank of New Zealand's rate decision to keep interest rates unchanged. The Kijun-sen and the Tenkan-sen move higher, suggesting short-term bullishness that could increase volatility. The Senkou Span A of the Ichimoku Kinko Hyo Cloud drifts higher, but the Senkou Span B remains flat, adding to volatility catalysts. Traders should also monitor the CCI in extreme overbought territory, as a negative divergence has formed. A breakdown below 100 could trigger a profit-taking sell-off. Can bears regain control over the AUD/NZD and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/NZD remain inside the or breakdown below the 1.1050 to 1.1085 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1070
- Take Profit Zone: 1.0875 – 1.0915
- Stop Loss Level: 1.1110
Should price action for the AUD/NZD break out above 1.1085, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1110
- Take Profit Zone: 1.1165– 1.1200
- Stop Loss Level: 1.1085
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